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Hertz Plans IPO of 28% Stake
To Finance Dividends to Owners

By

Lynn Cowan

Updated Oct. 28, 2006 12:01 a.m. ET

Car-rental company Hertz Global Holdings Inc. on Friday detailed its plans to sell a 28% stake in an initial public offering that will be used solely to finance special dividends to its current private-equity owners -- after which it intends to turn off the dividend spigot for new shareholders.

The company, based in Park Ridge, N.J., aims to sell 88.2 million shares of stock at a price between $16 and $18 a share, according to an updated registration form filed with the Securities and Exchange Commission Friday. Hertz,...